The transaction will see CLP sell the 40% stake to CDPQ for INR 26.4 billion (USD 368m/EUR 314m) in cash.

CLP India, a power generation company and renewable energy developer, is currently wholly owned by CLP, which will keep a majority 60% interest in the business.

According to the announcement, the backing and financial support of both its shareholders, will allow CLP India to accelerate growth. It will aim to expand investments in low-carbon growth areas, including renewable energy, as well as transmission, distribution and other customer-focused businesses. Opportunities in innovation and new business models will also be of interest.

Completion of the deal is subject to conditions precedent, including regulatory approvals.